Home values climb past last decade's best & keep going

Home Values Climb Beyond Last Decade’s Best, Then Keep Going After 8 Years, Home Values Hit New Record U. S. home values rose through the summer months and have now eclipsed the nation’s peak home valuations, set in early-2007. The Home Price Index, which is published by the Federal Housing Finance Agency (FHFA), shows U. S. property values up another 0.3 percent in August, adding to consecutive month win-streak which has now reached 21 months nationwide.


Home values are up 5.5% from last year and market fundamentals remain strong. Home supply lags bursting demand in many U. S. markets; and the pool of today’s buyers is growing.

This year’s mortgage rates have dived, too, shifting the math of “Should I rent or should I buy?” — especially for those using FHA loans which now feature a new, lower FHA MIP. The effective mortgage rate of today’s FHA loans is near its lowest of all-time. The pool of potential buyers has been augmented, also, by the huge number of low – and no-money-down mortgages available from U. S. banks; and the high rate at which home loans are getting approved. According to Ellie Mae, whose mortgage processing software handles more than 3.5 million loan applications annually, 71% of home loan application were able to be closed in September, which is the highest percentage since such data has been tracked. It’s an excellent time to be a buyer. Mortgage rates are low, home values are projected to rise, and banks are approving more mortgage applications than during any period this decade.

Click to see today’s rates (Oct 26th, 2015) Home Price Index Makes All-Time High The FHFA Home Price Index is a product of the Federal Home Finance Agency (FHFA). It tracks changes in the value of a home between subsequent sales. Data is supplied via Fannie Mae and Freddie Mac as part of the mortgage approval process.

The Home Price Index (HPI) is benchmarked to a value of 100, which is meant to represent the U. S. housing market as it existed in 1991, the year in which the index was created. In August 2015, the Home Price Index climbed to 224.9, a 0.3 percent increase from the month prior and a 5.5% increase from the year-ago levels. It’s also the highest published reading of all-time, eclipsing last decade’s peak of 224.0 set in April 2007. The rebound in home valuation connotes a “full recovery” from last decade’s housing downturn, but today’s active home buyers had an inkling this was true already. Homes have been selling more rapidly than in prior months and at higher prices.

Bidding wars are common with aggressively-priced homes. In many U. S. markets, it’s not usual to see homes sell above their initial list price.

Additionally, the National Association of Home Builders (NAHB) reports an influx of buyer interest, which has foot traffic through model units at its highest point in more than 8 years. Because of these factors, home values are expected to rise through the end of 2015 and into 2016. Thankfully, current mortgage rates remain cheap. Freddie Mac’s most recent mortgage rate puts the 30-year conventional fixed-rate mortgage at its lowest point in nearly six months; and rates for FHA and VA mortgage rates are even lower.

FHA mortgage rates typically run 12.5 basis points (0.125%) below rates for a comparable conventional loan, and VA mortgage rates typically out lower by 25 basis points (0.25%). VA home loans are available as part of the VA benefits package for active duty members and veterans of the Armed Services, National Guard, or the Reserves. FHA loans have no such restrictions. You can afford “more home” when mortgage rates are down. Click to see today’s rates (Oct 26th, 2015) Colorado, Arizona Lead Home Price Growth The FHFA Home Price Index is up 5.5% from one year ago, and now reads 224.9. This is the highest value for the Home Price Index in history, and completes the housing market’s recovery from last decade’s downturn.

That’s national. State-by-state, though, the story’s a little bit different. Not all areas are expanding with the same growth rate. What’s happening in Washington, for example, is not the same as what’s happening in Florida and the Home Price Index doesn’t address state-level activity in this manner. It does, however, group valuations by region.

Home values climb past last decade's best & keep going

As compared to one year ago, the Mountain region is leading the nation, rising 8.3% from the year prior. Annually, home price growth has varied by region: Pacific : +7.4% (Hawaii, Alaska, Washington, Oregon, California) Mountain : +8.3% (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona) Middle Atlantic : +2.2% (New York, New Jersey, Pennsylvania) East North Central : +3.5% (Michigan, Wisconsin, Illinois, Indiana, Ohio) South Atlantic : 7.3% (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida) New England, an area which includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut, has changed +3.2 percent since twelve months ago. The West North Central, which includes Oklahoma, Arkansas, Texas, and Louisiana, rose +4.9%. What Are Today’s Mortgage Rates? Home values are rising sharply, but the cost of homeownership is not. This is because mortgage rates are low, and lenders are approving more loans than during any period this decade. Take a look at today’s live rates now. Rates are available with no social security number required to get started, and with instant access to your “mortgage credit scores” Click to see today’s rates (Oct 26th, 2015) The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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Home values climb past last decade's best & keep going

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Home values climb past last decade's best & keep going

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